Latest news with #NewIndustrialMasterPlan2030
Barnama
4 hours ago
- Business
- Barnama
Malaysia's Economy Remains Resilient Amid Global Headwinds
BUSINESS By Nur Ashikin Abdul Aziz SINGAPORE, July 23 (Bernama) -- Malaysia's economy continues to demonstrate resilience in 2025, underpinned by strong domestic demand, robust investment activity, and favourable labour market conditions, despite pressures from global trade tensions and policy uncertainty. ASEAN+3 Macroeconomic Research Office (AMRO) chief economist Dong He stated that if the United States' reciprocal tariffs take effect from August 1 at the current rate of 25 per cent, Malaysia's GDP growth could fall from 5.1 per cent in 2024 to 4.2 per cent in 2025, and further to 3.8 per cent in 2026. 'This reflects the direct impact on Malaysia's exports to the US, the indirect effects through intermediate goods sent to other countries destined for the US, and the broader slowdown in global trade growth. Nonetheless, domestic demand will remain the key driver of growth,' he told Bernama. He noted that front-loaded exports had supported economic momentum earlier in the year. At the same time, key sectors such as information and communication technology and manufacturing remain active, bolstered by data centre investments and industrial diversification. However, the outlook for the second half of the year and beyond remains clouded by external headwinds, particularly the outcome of ongoing US trade negotiations. To maintain momentum, He said Malaysia's policy priorities should include sustained diplomatic engagement with the US on trade issues, diversification of export markets, and greater emphasis on the services sector, which is typically less exposed to protectionist measures. He added that accelerating structural reforms remains essential, especially through the implementation of the New Industrial Master Plan 2030 and the National Energy Transition Roadmap. 'Regionally, the Johor-Singapore Special Economic Zone (JS-SEZ) could emerge as a strategic advantage, catalysing cross-border investment and innovation.
New Straits Times
5 hours ago
- Business
- New Straits Times
Malaysia's economy stays resilient in 2025 amid global uncertainty
SINGAPORE: Malaysia's economy continues to demonstrate resilience in 2025, underpinned by strong domestic demand, robust investment activity, and favourable labour market conditions, despite pressures from global trade tensions and policy uncertainty. Asean+3 Macroeconomic Research Office (AMRO) chief economist Dong He stated that if the United States' reciprocal tariffs take effect from August 1 at the current rate of 25 per cent, Malaysia's GDP growth could fall from 5.1 per cent in 2024 to 4.2 per cent in 2025, and further to 3.8 per cent in 2026. "This reflects the direct impact on Malaysia's exports to the US, the indirect effects through intermediate goods sent to other countries destined for the US, and the broader slowdown in global trade growth. Nonetheless, domestic demand will remain the key driver of growth," he told Bernama. He noted that front-loaded exports had supported economic momentum earlier in the year. At the same time, key sectors such as information and communication technology and manufacturing remain active, bolstered by data centre investments and industrial diversification. However, the outlook for the second half of the year and beyond remains clouded by external headwinds, particularly the outcome of ongoing US trade negotiations. To maintain momentum, He said Malaysia's policy priorities should include sustained diplomatic engagement with the US on trade issues, diversification of export markets, and greater emphasis on the services sector, which is typically less exposed to protectionist measures. He added that accelerating structural reforms remains essential, especially through the implementation of the New Industrial Master Plan 2030 and the National Energy Transition Roadmap. "Regionally, the Johor-Singapore Special Economic Zone (JS-SEZ) could emerge as a strategic advantage, catalysing cross-border investment and innovation. "US tariffs could enhance the JS-SEZ's appeal, particularly if Singapore faces much lower tariffs than countries like Vietnam and Mexico," he said. He added that the strong commitment to collaboration demonstrated by both the Singaporean and Malaysian governments boosts confidence in the zone's prospects, particularly in a volatile global environment shaped by rising protectionism. "Together, the zone's economic value proposition and political backing can attract foreign investors looking to establish a base in Asean," he said. He noted that for the JS-SEZ to succeed, several challenges must be tackled, including cross-border movement of people and goods, infrastructure in southern Johor, wage gaps, labour shortages, and policy continuity, among others. "If successful, the JS-SEZ can serve as a blueprint for future regional integration initiatives. For example, it could inspire similar cross-border economic zones between Thailand and Laos or Vietnam and Cambodia," he said.
New Straits Times
16-07-2025
- Business
- New Straits Times
MACC's crackdown on illegal steel scrap bolsters fair trade practices: Industry body
KUALA LUMPUR: Malaysia Steel Association (MSA) says Malaysian Anti-Corruption Commission's Ops Metal initiative is strengthening fair trade practices, while supporting economic integrity and the development of sustainable supply chains. It said the illegal outflow of steel scrap results in domestic supply shortages, driving up costs and affecting the production output of local manufacturers. Ops Metal saw enforcement actions carried out at 19 locations, with illicit activities causing Malaysia to reportedly lose more than RM950 million in tax revenue over the past six years, averaging RM160 million each year. MSA said such substantial losses undermine the country's fiscal stability and erode market confidence. "Illicit exports directly undermine Malaysia's industrial decarbonisation efforts. Steel scrap is essential for low-carbon steel production, leading to substantially lower greenhouse gas emissions compared to traditional methods. "A secure and transparent domestic scrap supply is therefore paramount for achieving Malaysia's Net Zero by 2050 commitment, aligning with the New Industrial Master Plan 2030 which identifies basic metals as a key enabler of the green economy," it added. MSA said illicit steel scrap activities directly endanger the industry's sustainability, emphasising that this essential raw material is crucial for maintaining robust industrial operations, supporting job creation and driving sustainable national development. It added that coordinated, multi-agency efforts involving key government enforcement and financial bodies are essential to effectively combat illicit activities. "To ensure vital material supply for essential projects and long-term sustainability, MSA urges implementation of strategic frameworks that will enhance transparent domestic scrap circulation, facilitate circular economy integration, and ensure the continuity of low-emission steel production," it said. The association added that such measures are crucial to support Malaysia's infrastructure growth and climate goals, as they help strengthen industrial stability, uphold environmental responsibilities and boost global competitiveness.
Malaysian Reserve
15-07-2025
- Business
- Malaysian Reserve
Tech exports and project delivery show progress under NIMP
by AUFA MARDHIAH MALAYSIA is seeing strong gains in exports and industrial execution under the New Industrial Master Plan 2030 (NIMP 2030), with higher tech exports and faster delivery of approved projects, according to the Ministry of Investment, Trade and Industry (MITI). Manufacturing value-added rose 4.1% year-on-year (YoY) in the first quarter (1Q25) to RM95.7 billion, while median wages in the sector increased to RM2,745. Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz (picture) said the median wage increased by RM145 to RM2,745 compared to RM2,600 in 1Q24 for the manufacturing sector. As part of NIMP's push to boost economic complexity, Malaysia has secured RM52 billion in advanced industry investments so far, with 23,211 potential jobs created and over 4,500 engineers trained. Exports in targeted sectors also saw solid growth between January and May this year. Electrical and electronics (E&E) exports rose 20%, machinery and equipment by 14.6% and medical devices by 7.8%. From 2021 to 1Q25, 86.4% of approved manufacturing projects were implemented — totalling over 3,000 projects — a move Tengku Zafrul said helps small and medium enterprises (SMEs) benefit faster from investment inflows. 'Of the total approved investments, a small number of projects may not proceed due to reasons such as changes in the company's strategic direction, but this accounts for less than 3%,' he said today. Digital investments continue to rise, with RM310.7 billion approved since 2021, mostly in data centres. 'Every ringgit spent on data centres yields a RM6.60 return for the wider economy,' he added. To support exporters, MITI disbursed RM15 million in Market Development Grants in the first half of 2025 (1H25), generating RM2.88 billion in export sales. Focus markets include Latin America, Africa, West Asia and ASEAN. Malaysia also improved its global competitiveness, rising 11 places to 23rd in the IMD World Competitiveness Ranking — its best showing since 2020. 'These improvements were driven by strong export growth and market diversification,' Tengku Zafrul said.
New Straits Times
10-07-2025
- Business
- New Straits Times
Signs of revival for Klang Valley's office sector, says HLIB
KUALA LUMPUR: The Klang Valley office market is beginning to show signs of recovery after more than ten years of oversupply and weak demand, with anecdotal indications of stronger take-up in higher-quality developments. Hong Leong Investment Bank Bhd (HLIB) said there are early signs of improved demand for high-quality office spaces, citing that Sunway's V2 Tower achieved near full occupancy within just a year of its completion. It added that Sunway Square, a new twin-tower office project offering a total net lettable area of 1 million square feet and set to begin operations in the second half of 2025, has already secured 50 per cent tenant commitment for one tower, while negotiations are actively ongoing for the second tower. "This is a promising pre-leasing milestone given the sizable floor plate. Asking rents for the office are also attractive at above RM6 per square foot (psf)," HLIB said. The firm cited IOI City Tower 1 in Putrajaya as another example, noting that although the building was completed in 2015, it remained largely unoccupied for nearly nine years. However, since 2024, occupancy has steadily improved, and the tower is now fully leased, signifying a significant turnaround for the property. "Finally, IGB Commercial Real Estate Investment Trust, which owns a portfolio of office assets concentrated in the KL region, has shown steady improvement in both occupancy and rental rates. "Average occupancy has climbed from 75.4 per cent in financial year 2019 to 89.2 per cent in the first quarter of 2025, while average rental rates are gradually improving from RM6.15 psf to RM6.42 psf over the same period," it added. HLIB said Malaysia's economic focus is increasingly moving toward high-tech and high-value industries, fuelling demand for office-based activities such as research and development, design, and regional management operations. "As foreign direct investments (FDIs) mature, many multinational companies are expanding beyond manufacturing into regional headquarters and support offices. "Renewed political stability and clear national frameworks such as the New Industrial Master Plan 2030 and the National Energy Transition Roadmap are restoring investor confidence. Malaysia's cost advantage and skilled talent pool further strengthen its appeal as a regional office hub," it added. Recovery Follows Years of Oversupply The Klang Valley office market has experienced a prolonged slump over the past 10 to 15 years, mainly due to a persistent imbalance between supply and demand. Average vacancy rates in Kuala Lumpur and Selangor have stayed elevated at 20 to 30 per cent, while rental prices have remained largely flat. According to HLIB, this mismatch is the result of an aggressive surge in office development that far exceeded the pace of real business growth. "Many of these large-scale office projects were completed during one of the weakest economic periods in recent times amid the onset and aftermath of the COVID-19 pandemic. "Major completions during this period include The Exchange 106, Menara Affin, Menara IQ, Merdeka 118, and Pavilion Damansara Heights," it added. HLIB noted that during this period, many businesses scaled back and remote work became more prevalent, leading to a surge of new office supply entering a market already struggling with weak demand. The firm anticipates that the recovery will start in Selangor and the fringe areas of Kuala Lumpur, where oversupply is less severe, before gradually extending into the city centre as surplus space is absorbed over time. HLIB believes that in this recovery phase, the best-performing offices will be newer Grade A buildings, those certified green with energy-saving features, properties well-connected to public transport and retail amenities, and those managed by strong property teams.
